"On Wednesday, the board approved an early retirement incentive plan to encourage staff older than 55 who have worked for OUSD for at least five years to resign by June 30, 2026. The district will offer 75% of an employee's final salary toward a tax-sheltered annuity over a five-year period. It's the first time the district has offered the plan in 15 years."
"Five school board directors supported the plan, while Mike Hutchinson, who represents District 4, voted against it. Clifford Thompson, who represents District 7, was absent. "We haven't addressed our real financial crisis," Hutchinson said during the Nov. 12 school board meeting. "Instead we're doing things like hiring freezes and trying to incentivize losing our most experienced staff.""
"In total, 1,066 OUSD employees would be eligible for the plan, with an average salary of $82,149. If a quarter of those staff take the early retirement option, the district could save millions of dollars, depending on how many roles are replaced. If 80% are replaced, the district could save $5.6 million in the first year, and $22.6 million over five years, according to Public Agency Retirement Services projections."
Oakland Unified adopted an early retirement incentive offering 75% of an employee’s final salary into a tax‑sheltered annuity over five years for staff older than 55 with at least five years' service who resign by June 30, 2026. The plan, the first in 15 years, covers 1,066 eligible employees with an average salary of $82,149. The board approved the measure 5-1 with one absence. Officials expect savings by replacing higher‑paid senior staff with lower‑paid employees or not replacing positions. Projections show potential savings up to $5.6 million in year one and $22.6 million over five years under certain assumptions. Eligible staff must submit irreversible resignations by Jan. 29, and the plan could be rescinded if it does not meet financial goals.
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